The Australian dollar rose above $0.65 on Tuesday, gaining for the third consecutive session as investors reacted to the Reserve Bank of Australia’s November policy meeting minutes.
Aussie Dollar Gains on Hawkish RBA Minutes
The minutes indicated that the RBA intends to maintain a restrictive monetary policy until it is confident that inflation is sustainably moving toward its target, while also staying cautious of inflationary risks. However, the central bank emphasized that no future policy adjustments are ruled out. Currently, markets do not expect an RBA rate cut until May next year, with a 38% probability of a move in February.
Focus turns to PMIs
Investors are now focused on upcoming manufacturing and services activity reports for November, which could offer further insights into the broader economic outlook. Despite the recent gains, the Australian dollar remains near its weakest levels in over three months, pressured by a strong US dollar, economic uncertainties in China, and weaker commodity prices.
